JTEKT Corporation · TSE:6473
JTEKT — Q2 FY2024 Earnings Presentation
29 slides from JTEKT's earnings presentation, Nov 6, 2024
Slide 1: Financial results for the 2nd Quarter of fiscal year ending March 2025
1/29 Financial results for the 2nd Quarter of fiscal year ending March 2025 November 6, 2024 JTEKT CORPORATION
Slide 2: Overview of Financial results
Overview of Financial results 2/29 ■ Revenue decreased YoY due to weak sales, especially in Japan and China. ■ Despite favorable foreign exchange rate and cost reduction activities, Result business profit decreased YoY due to weak sales and continued loss costs caused by low productivity in North Am
Slide 3: Contents
Contents 3/29 １．Results for the 2nd Quarter of fiscal year ending March 2025 P４ ２．Forecasts for Fiscal Year ending March 2025 P９ ３．Appendix P１5 JTEKT CORPORATION
Slide 4: 1-1) FY2024 2Q Results – Consolidated performance
1-1) FY2024 2Q Results – Consolidated performance 4/29 ■ Revenue decreased due to weak sales, especially in Japan and China. ■ Business profit decreased due to weak sales and continued loss costs caused by low productivity in North America. ■ Net profit decreased due to business profit decrease and
Slide 5: 1-2) FY2024 2Q Results – Business profit analysis
1-2) FY2024 2Q Results – Business profit analysis 5/29 ■ Despite favorable foreign exchange rate and cost reduction activities, business profit decreased due to weak sales, continued loss costs caused by low productivity in North America and cost inflation which has not been fully recovered from cus
Slide 6: 1-3) FY2024 2Q Results – by Region
1-3) FY2024 2Q Results – by Region 6/29 ■ Business profit decreased in Japan and China, due to weak sales. ■ Business profit decreased in North America due to loss costs caused by low productivity. Revenue Business profit Unit：Billion of yen Unit：Billion of yen ratio to revenue(%) 368.5 8.2 8.7 354.
Slide 7: 1-4) FY2024 2Q Results – by Business unit
1-4) FY2024 2Q Results – by Business unit 7/29 ■ Although tough market conditions continue, revenue and business profit increase in Machine tools. Revenue Business profit Unit：Billion of yen Unit：Billion of yen ratio to revenue(%) 9.9 8.6 438.2 434.5 4.2 2.8 1.8 2.4 2.0 2.9 12.4 9.3 8.0 7.6 7.8 211.
Slide 8: Contents
Contents 8/29 １．Results for the 2nd Quarter of fiscal year ending March 2025 P４ ２．Forecasts for Fiscal Year ending March 2025 P９ ３．Appendix P１5 JTEKT CORPORATION
Slide 9: 2-1) FY2024 Forecast – Consolidated performance
2-1) FY2024 Forecast – Consolidated performance 9/29 ■ Considering 2nd quarter results, recent customer demand and market conditions, we revised our forecasts downward in revenue and profits. ■ Although tough market conditions continue, we aim to achieve targets and increase profit by accelerating c
Slide 10: 2-2) FY2024 Forecast – Business profit analysis
2-2) FY2024 Forecast – Business profit analysis 10/29 ■ Business profit decreased due to weak sales and continued loss costs caused by low productivity in North America. ■ Task force teams activities to normalize the production and minimize loss costs are on going in North America. Unit：Billion of y
Slide 11: 2-3) FY2024 Forecast – by Region
2-3) FY2024 Forecast – by Region 11/29 ■ Business profit decreased in all regions due to tough market conditions. Revenue Business profit Unit：Billion of yen Unit：Billion of yen ratio to revenue(%) 9.6 8.6 7.6 6.1 735.7 714.0 4.3 3.7 2.1 -0.5 31.4 -3.7 -4.5 26.5 26.7 466.5 470.0 24.5 13.0 278.0 285.
Slide 12: 2-4) FY2024 Forecast – by Business unit
2-4) FY2024 Forecast – by Business unit 12/29 ■ Except for Machine tools, Revenue and Business profit decreased in all business units. Revenue Business profit ratio to revenue(%) Unit：Billion of yen Unit：Billion of yen 9.6 9.6 912.0 3.3 3.5 3.5 2.0 2.0 2.4 851.0 29.9 19.5 17.0 17.9 432.3 427.0 15.0
Slide 13: 2-5) Return to shareholders
2-5) Return to shareholders 13/29 ■ We revised dividend policy “ Dividend: DOE 2-3% ” in the 2nd Period of Mid-term plan. ➡ Aiming for further growth and expansion of shareholder return with enhancement of fundamentals for profitability improvement in the 2nd Period of Mid-term plan. ■ We revised FY
Slide 14: Contents
Contents 14/29 １．Results for the 2nd Quarter of fiscal year ending March 2025 P４ ２．Forecasts for Fiscal Year ending March 2025 P９ ３．Appendix P１5 JTEKT CORPORATION
Slide 15: 3-1) Management indicators
3-1) Management indicators 15/29 Cash Flow statement Capital Efficiency Indicators Upper row Cash flows from operating activities ROE ROA ROIC (%) Lower row Cash flows from investing activities Unit : Billion of yen 5.9 FCF 154.4 5.4 5.5 5.3 91.7 3.9 78.2 3.8 67.0 83.1 3.5 39.2 41.7 9.2 26.1 2.6 2.5
Slide 16: 3-2) Management indicators
3-2) Management indicators 16/29 Capital expenditures Depreciation & amortization R&D expenses Upper row Oct-Mar Unit : Billion of yen Unit : Billion of yen ratio to revenue (%) Lower row Apr-Sep 4.2 95.0 3.3 3.3 75.0 3.1 3.1 72.3 85.0 69.4 66.9 64.0 63.0 58.9 60.0 65.1 62.3 39.6 52.1 51.3 34.5 37.2
Slide 17: 3-3) Management indicators
3-3) Management indicators 17/29 Inventories Interest-bearing debt / Cash reserves Inventory turnover month Unit : Billion of yen Left bar Interest-bearing debt NET DE ratio Right bar Cash reserves Unit : Billion of yen 1.8 1.7 1.7 1.6 1.8 0.30 0.22 0.20 267.0 271.3 0.13 0.09 247.5 229.0 286.2 261.7
Slide 18: 3-4-1) Financial statements
3-4-1) Financial statements 18/29 Assets Liabilities and equity Unit : Billion of yen Unit : Billion of yen FY2024 Liabilities FY2024 Assets FY2023 Change FY2023 Change 2Q and equity 2Q Cash and cash Trade and other 167.0 130.9 -36.0 388.9 344.5 -44.3 equivalents payables Trade and other Interest-be
Slide 19: 3-4-2) Financial statements
3-4-2) Financial statements 19/29 Consolidated Profit and Loss statement Consolidated Cash Flow statement Unit : Billion of yen Unit : Billion of yen FY2023 FY2024 FY2023 FY2024 Change Change 2Q 2Q 2Q 2Q Cash flows from Revenue 922.2 918.4 -3.7 operationg activities 89.1 9.2 -79.9 Cash flows from Bu
Slide 20: 3-5-1) Performance comparison – FY2024 2Q Results (by Region)
3-5-1) Performance comparison – FY2024 2Q Results (by Region) 20/29 Unit:Billion of yen FY2023 FY2024 Foreign FY2024 Change excluding Region change 2Q 2Q exchange 2Q foreign exchange Japan 368.5 354.9 -13.5 -3.7% - 354.9 -13.5 -3.7% North America 224.8 239.1 +14.2 +6.3% ＋17.1 221.9 -2.9 -1.3% Europe
Slide 21: 3-5-2) Performance comparison – FY2024 2Q Results (by Business unit)
3-5-2) Performance comparison – FY2024 2Q Results (by Business unit) Unit:Billion of yen 21/29 FY2023 FY2024 Foreign FY2024 Change excluding Business unit change 2Q 2Q exchange 2Q foreign exchange Steering 438.2 434.5 -3.6 -0.8% ＋16.7 417.8 -20.3 -4.6% Drivelines 211.5 212.9 1.4 +0.7% ＋5.2 207.7 -3.
Slide 22: 3-6-1) Quarterly result trend – by Region
3-6-1) Quarterly result trend – by Region 22/29 Unit : Billion of yen 1Q 2Q 3Q 4Q FY2023 Revenue Business profit Revenue Business profit Revenue Business profit Revenue Business profit Japan 172.8 2.8 1.7% 195.7 14.2 7.3% 196.1 10.0 5.1% 171.0 4.3 2.5% North America 111.0 4.7 4.2% 113.8 -0.5 -0.5% 1
Slide 23: 3-6-2) Quarterly result trend – by Business unit
3-6-2) Quarterly result trend – by Business unit Unit : Billion of yen 23/29 1Q 2Q 3Q 4Q FY2023 Revenue Business profit Revenue Business profit Revenue Business profit Revenue Business profit Steering Systems 215.1 5.4 2.5% 223.1 7.0 3.2% 236.7 9.8 4.2% 237.0 7.6 3.2% Drivelines 98.0 2.3 2.4% 113.5
Slide 24: 3-7-1) Business profit analysis – Steering Systems / Drivelines
3-7-1) Business profit analysis – Steering Systems / Drivelines 24/29 Unit : Billion of yen Steering Systems Unit : Billion of yen Drivelines JTEKT CORPORATION
Slide 25: 3-7-2) Business profit analysis – Industrial & Bearings / Machine tools
3-7-2) Business profit analysis – Industrial & Bearings / Machine tools 25/29 Unit : Billion of yen Industrial & Bearings Unit : Billion of yen Machine tools *Others excluded JTEKT CORPORATION
Slide 26: 3-8-1) Performance comparison – FY2024 Forecasts (by Region)
3-8-1) Performance comparison – FY2024 Forecasts (by Region) 26/29 Unit:Billion of yen Foreign Change excluding Region FY2023 FY2024 Change FY2024 exchange foreign exchange Japan 735.7 714.0 -21.7 -3.0% +0.0 714.0 -21.7 -3.0% North America 466.5 470.0 ＋3.4 +0.7% +4.5 465.5 -1.0 -0.2% Europe 239.5 21
Slide 27: 3-8-2) Performance comparison – FY2024 Forecasts (by Business unit)
3-8-2) Performance comparison – FY2024 Forecasts (by Business unit) Unit:Billion of yen 27/29 Foreign Change excluding Business unit FY2023 FY2024 Change FY2024 exchange foreign exchange Steering 912.0 851.0 -61.0 -6.7% ＋0.5 850.5 -61.5 -6.7% Drivelines 432.3 427.0 -5.3 -1.2% ＋3.0 424.0 -8.3 -1.9% A
Slide 28: 3-9) Profit trends
3-9) Profit trends 28/29 Equity ratio (%) 48.4 50.6 43.6 45.0 46.3 42.3 42.0 42.4 42.7 40.1 Left bar Business profit Right bar Profit attributable to owners of parent company Unit : Billion of yen 81.9 77.4 81.3 72.8 71.7 62.6 48.6 50.0 47.5 49.6 42.3 37.5 40.2 34.2 27.2 20.6 20.0 15.9 0.8 -3.7 FY20
Slide 29: Thank You
29/29 Thank You J-Nyan TEK-NYAN 【Note on forward-looking statements】 This report contains forward-looking statements pertaining to future plans and strategies. These forward-looking statements include risks, uncertainties and other factors, and actual results and business results may differ from tho